Crude Oil Prices Surge Above $90 Amid Middle East Tensions

The price of crude oil has surged significantly in recent days, with Brent crude oil reaching nearly $100 per barrel. According to the U.S. Energy Information Administration (EIA), European Brent spot prices rose from $88.24 per barrel on August 25 to $96.02 per barrel on September 1, a weekly increase of $7.78 or 8.8%. Over the same period, WTI Cushing spot prices climbed from $83.90 per barrel to $91.48 per barrel, representing a 9.0% gain.

However, an unusual divergence emerged at the retail level. Despite the increase in crude oil prices, the national average retail price for regular gasoline was only $4.071 per gallon for the week ending August 31, according to the EIA's 'Gasoline and Diesel Fuel Update'. This suggests that the increase in crude oil prices has not yet been reflected at the pump.

Industry experts warn of potential supply disruptions in the Persian Gulf, which could drive up oil prices even further. A wealth manager quoted by Benzinga predicted that oil could surge above $120 if such disruptions continue.